The Tangle of Palm Oil Investments in Sambas and Bengkayang Regencies
The palm oil plantation sector has clearly become a mainstay in West Kalimantan, judging from the rapid growth of permits granted by local governments—particularly following the surge in global crude palm oil (CPO) prices in 2005.
By 2010, more than 4.9 million hectares of land had been allocated to 326 plantation companies. Compared with 2004 figures, this means an expansion rate of approximately 400,000 hectares per year.
The monoculture nature of palm oil plantations—which legitimizes clear-cutting and allows control of land for up to 160 years—has long triggered deep concern among civil society groups. Since early 2005, those fears have been realized: 120 new conflicts have erupted between local communities and palm oil companies across eight districts in West Kalimantan.
Meanwhile, international organizations such as WWF-Sarvision have documented an “anomalous” deforestation rate of 916,492 hectares between 2004 and 2008, identifying palm oil expansion as a major driver.
Further research by NGOs such as Greenpeace and Friends of the Earth—involving Golden Agri Resources/Sinar Mas in Ketapang and Kapuas Hulu, Wilmar International in Sambas, and IOI in Ketapang—reveals systemic non-compliance by corporations. Their violations range from illegal logging and forest encroachment to operations without environmental impact assessments (AMDAL) and land grabbing from indigenous and local communities—often with the approval or complicity of local governments and indifference from the central government.
Impacts on Local Communities
The development of palm oil plantations has led to several damaging outcomes for local populations:
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Destruction of existing local economic sources.
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Dependency and domination of communities by corporations, leading to the erosion of traditional social and cultural structures.
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Prolonged conflicts—both vertical (with government and companies) and horizontal (between communities).
Rather than prompting reflection or reform, the government’s inaction has only exacerbated existing problems and created new ones.
Examples of Unresolved Land Conflicts
A few striking cases illustrate this negligence:
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Wilmar Sambas Plantation (WSP) vs. the community of Senujuh Village, and PT Agro Nusa Investama vs. Sajingan Kecil Hamlet (Semanga Village, Sejangkung District) — both cases required mediation by the Compliance Advisor Ombudsman (CAO), a World Bank IFC oversight body. This clearly shows how powerless local governments are in mediating between citizens and investors.
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In Semunying Jaya Village, Jagoi Babang District, Bengkayang, the dispute between the Semunying Jaya Indigenous community and PT Ledo Lestari (Duta Palma Group) exposed inconsistencies in government decisions. Although the Bengkayang Regent declared 1,420 hectares of the area as a protected community forest in 2010, he later issued a new location permit for 9,000 hectares, overlapping the same area.
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In Sentaban Village, Sajingan Besar District, Sambas, conflict with PT Kaliau Mas Perkasa (KMP) continues unresolved. The community has requested an enclave of their rubber farms from the company’s concession area, but no resolution has been reached.
Even when partnership schemes (plasma-nucleus) are proposed, communities rarely participate in decision-making, leaving them structurally powerless in negotiations with corporations.
However, a more positive example occurred in Mekar Jaya Village (Sajad District), where PT Agro Wiratama (Musim Mas Group, RSPO member) eventually released 1,478 hectares of community land from its permit area following sustained community advocacy using RSPO’s New Planting Procedure.
Unfortunately, most cases remain unresolved, and local governments continue to ignore the people’s struggles.
Criminalization of Defending Land Rights
In some cases, land conflicts have even resulted in criminalization. For instance, in Semayong Hamlet, Sungai Kumpai Village, three residents were arrested and tried after protesting against PT Pattiware I, even though the company’s location permit had expired in 2011.
Such cases highlight both the failure of local authorities to mediate and the absence of legal recourse—especially when companies are neither RSPO members nor IFC-funded entities.
Adding to the complexity, new land ownership claims have emerged, such as individuals declaring themselves heirs of the former Sambas Sultanate, claiming land long cultivated by villagers.
People’s Declaration – Sambas and Bengkayang, 8 May 2011
We, the undersigned participants of the Community Consolidation of Palm Oil Expansion-Affected Villages held in Sambas and Bengkayang on 7–8 May 2011, declare:
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The government, especially at the district level, must stop issuing arbitrary permits to palm oil companies that harm local communities.
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The narrative that palm oil investment increases local revenue (PAD), reduces unemployment, and boosts welfare is misleading and unsupported by evidence.
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Existing permits must be reviewed and corrected, particularly those overlapping with forest areas or communal lands, or issued for multiple, conflicting uses.
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District governments must actively mediate land disputes, ensure fair compensation, respect community refusals, facilitate equitable partnership models, and monitor corporate activities closely.
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Companies must comply with national laws, community rights, and international instruments, and RSPO members must adhere to its principles, criteria, and code of ethics.
Signed on Sunday, 8 May 2011
Participants from affected communities in Sambas and Bengkayang Regencies
| No | N a m a | Desa | Kecamatan | Kabupaten |
| 1 | Petrus Atus | Kaliau | Sajingan Besar | Sambas |
| 2 | Syar’ie | Semangak | Sejangkung | Sambas |
| 3 | Sumardi | Santaban | Sajingan Besar | Sambas |
| 4 | Sarimi | Sungai Kumpai | Teluk Keramat | Sambas |
| 5 | Kumaini | Semata | Tangaran | Sambas |
| 6 | Azim Kitung | Mekar Jaya | Sajad | Sambas |
| 7 | Jamaludin | Semunying Jaya | Jagoi Babang | Bengkayang |
| 8 | Sahrial | Serikat Tani Serumpun Damai | Sambas | |